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Armor Designs Announces Year-End 2013 Financial Results

Companies mentioned in this article: Armor Designs, Inc.

PHOENIX, June 30, 2014 /PRNewswire/ -- Armor Designs, Inc. (LSE: ADID)("Armor" or the "Company"), a leading designer, integrator and manufacturer of body and vehicular armor solutions for military, government and commercial use, today announced its fiscal year-end results for the period ending December 31, 2013 and the filing of its Annual Report on June 30, 2014.

"In just the few short weeks of my tenure at Armor Designs, we have achieved significant accomplishments," said David Oliveira, Chief Executive Officer of the Company. "We have appointed a new nominated advisor and broker (NOMAD), we restored our trading on the AIM market of the London Stock Exchange, which had been suspended since May 2, 2014, and we elected Mr. Robert Elizondo as Chairman of the Board of directors. The Company also signed a non-exclusive distributorship agreement on June 10(th) with Achilles Technology Solutions, an established global distributor of innovative safety and security technologies, services and products, which is a cornerstone to our new marketing strategy to increase the distribution channels for our products. Over the past eighteen months, the Company has successfully raised over US$3 million in common equity capital in two private placement offerings for which the funds were used for working capital needs in addition to sustaining current operations and overhead costs.

"While we are proud of our accomplishments so far, we have just begun. Our near-term objectives are to reduce our debt and restructure our balance sheet, increase our stock liquidity and float. From a strategic standpoint, our goals are to solidify our existing distribution contracts and expand the marketing of our products worldwide. My transition into the chief executive role at Armor Designs has been smooth and seamless, and we have received tremendous support from our shareholders, vendors, distributors, research partners and prospective end-users. Moreover, we could not have completed the process without inexhaustible efforts from our outstanding team professional employees, board members and outside counsel, and we extend to them our extreme gratitude.

"Our new mission statement is to make the best products in our space to protect those who protect us. To maintain our core beliefs and principles while exhibiting the highest integrity and transparency and building shareholder value," concluded Mr. Oliveira.

Financial Results Year Ended December 31, 2013

For the year ended December 31, 2013, the Company incurred net losses from operations of approximately US$4.8 million, or ($0.18) per share, which compares to a loss of US$4.3 million, or ($0.16) per share, for the year ended December 31, 2012. The Company is currently in preliminary discussions in relation to the status of this contract. Despite the sharp decline in revenues, our operating loss for 2013 year of $4.1 million was only 5% greater than our operating loss of $3.9 million incurred in 2012, primarily because of a 56% reduction in our general and administrative expenses.

Management is pursuing ways to improve operating results in order to generate additional cash flow from operations. In June 2014, the Company recently issued 1,000,000 shares of common stock for approximately US $1,000,000 pursuant to a private placement in addition to a previous equity offering completed in 2013 of 136,667 shares totaling US$2,050,000 in a private placement. During the 12-month period ended December 31, 2013, the Company raised US$2,050,000 by issuing 136,667 shares of common stock at a price of US$15 pursuant to a private placement. The Company may also consider other forms of non-equity fundraisings for the same purpose which may include debt financing collateralized by the Company's assets.

    For further information please contact:

    Dennard Lascar Associates, LLC.         Tel: 713-529-6600

    M. Carol Coale

    Kenneth S. Dennard

    Armor Designs, Inc.                      Tel: +1 520 329

    David L. Oliveira

    S. P. Angel Corporate Finance LLP        Tel: +4420 3463

    Stuart Gledhill

    Tercel Moore

About Armor Designs, Inc.

Armor Designs, Inc. (ADI) is a knowledge-based, technology-innovation company that develops and manufactures the highest quality, lightest and most cost-effective armor solutions to serve the military, government and commercial sectors on a global basis. We are an international company headquartered in Phoenix, Arizona, and our commitment to state-of-the-art innovation is driven through the application of our patented Volumetrically Controlled Manufacturing (VCM) methodologies. VCM is a unique, integrated design and manufacturing approach that optimizes parts and systems by varying the size, shape, topology and material properties of the constituent materials in the armor allowing for rapid design and manufacturing of advanced composite materials. This methodology eliminates the trial-and-error approach and instead provides a robust platform for a rapid development of armor solutions that can be tailored for any application.

The Report and Accounts will shortly be available on the Company website, Please also refer to our Annual Report for complete financial statements.

For more information, please visit the Armor Designs web site at

Safe Harbor Statement and Disclaimer

This news release includes "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements give our current expectations, opinion, belief or forecasts of future events and performance. A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "should," and certain of the other foregoing statements may be deemed forward-looking statements. Although Armor Designs believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The Company takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by the Company.

    Armor Designs, Inc.

    Consolidated Income Statements

    Years ended December 31, 2012 and 2013

                                               Years Ended 31 December,

                                                   2013                2012

                                               US$               US$
                                               ---               ---

    Revenue                                     $97,494          $5,544,049

    Cost of goods sold                        1,686,590           3,835,163
                                              ---------           ---------

    Gross margin                            (1,589,096)          1,708,886
                                             ----------           ---------

    Operating expenses:

    General and administrative                2,472,152           5,593,584

    Selling and marketing                         7,475               4,724
                                                  -----               -----

    Total operating expenses                  2,479,627           5,598,308
                                              ---------           ---------

    Other expense:

    Interest expense, net                     (757,342)          (298,461)

    Other expense                                     -          (120,000)
                                                    ---           --------

    Total other expenses                      (757,342)          (418,461)

    Loss before income taxes                (4,826,065)        (4,307,883)

    Provision for income taxes                        -                  -
                                                    ---                ---

    Net loss                               $(4,826,065)       $(4,307,883)
                                            -----------         -----------

    Basic and diluted loss per share            $(0.18)            $(0.16)
                                                 ======              ======

    Shares used in computation of basic      27,325,138          27,188,471
    and diluted loss per share

    Armor Designs, Inc.

    Consolidated Balance Sheets

    Years ended December 31, 2012 and 2013

                                                                                                                           2013            2012

                                                                                                                       US$         US$
                                                                                                                       ---         ---


    Current Assets:

    Cash and cash equivalents                                                                                           $19,752 $             -

    Accounts receivable, net                                                                                             40,871          25,227

    Inventory                                                                                                           475,094         553,286
                                                                                                                        -------         -------

    Total current assets                                                                                                535,717         578,513

    Notes receivable                                                                                                    100,000         100,000

    Property and equipment, net                                                                                       2,323,339       3,017,935

    Loan costs, net of accumulated amortization of $14,995 and $8,997                                                    14,995          20,933
                                                                                                                         ------          ------

    Total Assets                                                                                                     $2,974,051      $3,717,441
                                                                                                                     ==========      ==========

                                                                             LIABILITIES AND STOCKHOLDERS' DEFICIT

    Current Liabilities:

    Accounts payable                                                                                                 $2,087,111      $1,951,217

    Accrued expenses                                                                                                  1,811,754       1,379,060

    Accrued expenses, related parties                                                                                 3,192,419         864,156

    Notes payable, related parties                                                                                    4,612,141       5,630,628

    Notes payable, less long term portion                                                                             1,570,904       1,444,431
                                                                                                                      ---------       ---------

    Total current liabilities                                                                                        13,274,329      11,269,492

    Notes payable, less current portion                                                                                 584,253         684,424
                                                                                                                        -------         -------

    Total liabilities                                                                                                13,858,582      11,953,916
                                                                                                                     ----------      ----------

    Commitments and contingencies

    Stockholders' Deficit:

    Common stock, $0.001 par value; 50,000,000 shares authorized; 27,325,138
    and 27,188,471 issued and outstanding  in 2013 and 2012, respectively
                                                                                                                         27,325          27,188

    Additional paid-in capital                                                                                       60,170,524      57,992,652

    Accumulated deficit                                                                                            (71,082,380)   (66,256,315)
                                                                                                                    -----------     -----------

    Total stockholders' deficit                                                                                    (10,884,531)    (8,236,475)
                                                                                                                    -----------      ----------

    Total Liabilities and Stockholders' Deficit                                                                      $2,974,051      $3,717,441
                                                                                                                     ==========      ==========

SOURCE Armor Designs, Inc.